Magnifoam Announces Airbus Design/Build Team; Awarded Silicone Transportation Contract in Europe.

Business Editors

MISSISSAUGA, Ontario--(BUSINESS WIRE)--Jan. 22, 2004

Magnifoam Technology International Inc. (MTII) (TSX: MTG) today announced the formation of a technical team to aggressively pursue silicone contracts on the Airbus A380 and Airbus A340 long-range aircraft in Europe. The new team is based at MTII's Leewood Elastomer facility in Bremen, Germany.

"The formation of this design/build team demonstrates the long-term commitment of MTII management and board of directors to grow our European business into a centre for the development of high-tech materials for use in modern aircraft systems," said Bill Neill, MTII President and Chief Executive Officer. "During the past year, Leewood has successfully developed its relationship with the European Aeronautics Defense Society (Airbus) to the point where firm contracts have been received and a dedicated technical team is now in place."

The Bremen design/build team was established earlier this fiscal year. During the past eight months, this team helped secure several new contracts, including the adaptation of MTII's MSK2 patented material for use as a crew shelter bellows in the A380 and long-range A340. More recently, a "Last Call" contract to develop material for a flexible bellows in the same aircraft was awarded.

MTII is currently seeking approval of its materials in 12 other Airbus applications. The total value of pending and awarded contracts with Airbus is approximately EUR 100,000 Euros per plane, or EUR 60,000,000 Euros over the lifetime of the contracts. While each contract has to be won on an individual basis, MTII management is confident that the A380 design/build team, established with Airbus' encouragement, will win a substantial share of this business. The cost to operate this team is estimated at CDN$2,000,000 over two years.

Transportation Contract

In an unrelated announcement, MTII has also received its first contract to supply Bombardier Transportation in Derby, England. Serco Ryan, a supplier of components to Bombardier Transportation, has specified Magnifoam silicone parts for seals and gaskets to be used in Bombardier railcars. While the initial order for Magnifoam silicone parts is worth Cdn. $120,000, there is strong upside for additional orders, as these parts will be installed on all future Serco Ryan equipment. This contract represents the first breakthrough for Magnifoam in the British market for its industrial silicone products.

About Magnifoam

Magnifoam Technology International Inc. (MTII) designs, develops and manufactures custom-engineered products using silicone and other cellular materials. The company has two core businesses: Silicone and Aerospace. MTII also serves a variety of specialty niche markets through its Fabricated Products business. MTII's manufacturing divisions develop and produce silicone foam using patented technology, and design and fabricate energy management systems from a variety of flexible, cellular materials. Through its fully-owned subsidiary Leewood Elastomer GmbH, MTII produces and distributes specialty silicone elastomer products. MTII sells its products primarily in the aerospace, mass transit, automotive, sporting goods, industrial, institutional, medical and electronic markets.

About Airbus

A leading aircraft manufacturer with the most modern and comprehensive product line on the market, Airbus is a global company with design and manufacturing facilities in France, Germany, the UK, and Spain as well as subsidiaries in the US, China and Japan. Headquartered in Toulouse, France, Airbus is an EADS joint Company with BAE Systems.

About Serco Ryan

Serco Ryan is a leading supplier of fasteners, fixings, cutting tools, sealing products and 'C' Class components for a wide variety of industries. Based in Halesowen, UK, Serco Ryan is part of the WYKO group of companies, which has over 2,500 employees in the UK and continental Europe.